We see them everywhere — pulling up to airport terminals, dropping passengers off at sporting events and shuttling people to and from work.

Drivers for Uber, Lyft and other ride-sharing services have become a common sight on Southern California streets and freeways. And although the job is typically promoted as an easy and flexible way to earn extra cash, a new study from UCLA reveals many drivers are working extra hours for longer durations while struggling to stay afloat.

“Over a third of drivers buy or lease their car so they can drive for one of these companies, and this locks them into a variety of costs,” said Janna Shadduck-Hernandez, project director for the report and a faculty member at UCLA. “Many of these drivers initially see this as a novelty and an easy way to make some added income. But with all of the expenses they end up paying, some drivers find they are not even making minimum wage.”

The costs of car maintenance and gas often means Uber and Lyft drivers are earning less than minimum wage for all the hours they spend shuttling customers. (UCLA survey photo)

The costs add up

Drivers are responsible for their own vehicle costs as well as the accessories and amenities expected by clients, such as chargers and water. Forty-four percent of those surveyed reported difficulties paying for basic work expenses, including gas, insurance and car maintenance fees.

Frank, an Uber and Lyft driver from Long Beach who declined to give his name for fear of retaliation from the companies, is a prime example. He purchased a Ford Fusion Energi in 2016 for his ride-sharing job and has already racked up nearly 120,000 miles.

“I’ve been focusing mainly on doing airport rides,” the 46-year-old driver said. “I average anywhere from 175 to 300 miles a day, and I’m doing 35 to 40 rides a week. I make about $1,000 a week but all of that money goes right out the moment I get it. I just spent $550 on a new set of tires. Last year, I spent $750 on tires and had to replace a headlamp for $285.”

That’s not including gas, insurance, taxes and other incidental expenses that crop up.

Vehicle wear and tear

When asked what their most pressing concerns were, 77 percent of drivers surveyed for the UCLA report pointed to vehicle wear and tear. Other top concerns include, ridesharing insurance, safety, taxes and traffic citations.

“If I come home from a good night I’ll make around $150,” said Nicole, a 51-year-old Uber and Lyft driver from Pasadena who also declined to give her last name. “But when I think about gas, insurance and the money I have to set aside for taxes and car maintenance … that comes to about $75. It’s just not sustainable.”

More than 40 percent of ride-sharing drivers end up working more hours to whittle down expenses they would otherwise be unable to pay, the study said. Thirty-five percent end up borrowing money, 31 percent turn to their credit cards, and 14 percent find the money through other means.

Looking for more control

Most of the ride-hailing drivers surveyed for the report (55 percent) said they would prefer to earn a set hourly wage after expenses, and most of those (87 percent) would like a guaranteed rate of $15 an hour or more. The drivers — who are classified as independent contractors as opposed to employees — also say they want to negotiate the conditions of their contract with Uber and Lyft.

Uber CEO Dara Khosrowshahi has lobbied business, labor and government leaders to institute a portable benefits system for drivers, although that has yet to happen. Last month, the company unveiled an Uber Visa Debit Card that allows drivers to earn discounts or cash back on gas, groceries and driving expenses.

A 2018 report from Lyft reveals that 92 percent of its drivers are employed, looking for work, full-time students, or retirees. Sixty-five percent of the company’s drivers say they use Lyft to financially support their families, and 93 percent drive fewer than 20 hours a week.

Kevin Smith handles business news and editing for the Southern California News Group, which includes 11 newspapers, websites and social media channels. He covers everything from employment, technology and housing to retail, corporate mergers and business-based apps. Kevin often writes stories that highlight the local impact of trends occurring nationwide. And the focus is always to shed light on why those issues matter to readers in Southern California.

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